Nikola announces a $100 million stock offering

Nikola announces a 0 million stock offering


U.S. Nikola’s logo is pictured at an event held to present CNH’s new full-electric and Hydrogen fuel-cell battery trucks in partnership with U.S. Nikola event in Turin, Italy, December 3, 2019.

Massimo Pinca | Reuters

Electric heavy-truck maker Nikola said on Thursday that it plans to raise $100 million via a secondary stock offering to the public and — possibly — a private sale of stock to an unnamed investor, if needed.

The company’s shares were down about 5% in after-hours trading following the news.

related investing news

Goldman Sachs upgrades this solar stock poised to rally nearly 80%, says recent pullback creates an attractive entry point

CNBC Pro

Nikola’s plan to raise capital comes in two parts. First, the company said, it will offer up to $100 million worth of stock to the public via a traditional secondary offering, with Citigroup underwriting. Citigroup will have the option to purchase an additional $15 million worth of shares.

Secondly, Nikola said it has entered into a forward stock purchase agreement with an unnamed investor. If the public offering raises less than $100 million, that investor has agreed to buy the remainder at the public offering price.

Either way, Nikola will raise $100 million before fees, money that it plans to use for working capital and other general purposes.

Nikola is slowly ramping up production of its electric semitrucks after building just 258 battery-electric trucks in 2022. The company said last month that it expects to build between 250 and 350 of the battery-electric semis in 2023, along with 125 to 150 of its upcoming fuel-cell-powered trucks, set to launch this fall. The fuel-cell trucks will have longer range than the battery-electric versions.

Nikola had $233.4 million in cash and equivalents available as of Dec. 31, down from $315.7 million at the end of September. The company lost $222.1 million in the fourth quarter of 2022.



Source

Nationwide coordinated retail crime crackdown results in hundreds of arrests, authorities say
Business

Nationwide coordinated retail crime crackdown results in hundreds of arrests, authorities say

A nationwide coordinated crackdown on retail crime — what authorities are calling the first of its kind — led to hundreds of arrests in 28 states last week. The blitz, led by Illinois’ Cook County regional organized crime task force, involved more than 100 jurisdictions and over 30 retailers including Home Depot, Macy’s, Target, Ulta […]

Read More
Steph Curry’s Thirty Ink generated 4 million in revenue last year, and all of its businesses are profitable, company says
Business

Steph Curry’s Thirty Ink generated $174 million in revenue last year, and all of its businesses are profitable, company says

Steph Curry’s Gentleman’s Cut bourbon. Courtesy: Gentleman’s Cut Steph Curry is one of the greatest basketball players ever, and judging by his company’s financials, he’s off to a pretty good start in the business world. Curry is the CEO of Thirty Ink, a house-of-brands conglomerate that owns companies including Unanimous Media, Gentleman’s Cut bourbon and […]

Read More
McDonald’s is bringing back the snack wrap to U.S. restaurants next month
Business

McDonald’s is bringing back the snack wrap to U.S. restaurants next month

McDonald’s Snack Wrap. Courtesy: McDonald’s McDonald’s snack wraps will return to U.S. restaurants next month as the fast-food giant looks to boost sales after a sluggish start to the year. McDonald’s introduced snack wraps nearly two decades ago but discontinued the item in 2016 because it slowed its kitchens down too much. Some franchisees kept […]

Read More